Posted!

Join the Conversation

Comments

Welcome to our new and improved comments, which are for subscribers only.
This is a test to see whether we can improve the experience for you.
You do not need a Facebook profile to participate.

You will need to register before adding a comment.
Typed comments will be lost if you are not logged in.

Please be polite.
It's OK to disagree with someone's ideas, but personal attacks, insults, threats, hate speech, advocating violence and other violations can result in a ban.
If you see comments in violation of our community guidelines, please report them.

Publicly funded Gold Coast Health Plan to pay up to $450 an hour for interim CEO

The financially struggling Gold Coast Health Plan will pay a consultant as much as $450 an hour to serve as the publicly funded organization's interim CEO.

Gold Coast's governing board, the Ventura County Medi-Cal Commission, approved a contract Monday night with the national research and consulting firm, Health Management Associates, to temporarily replace former CEO Dale Villani.

Commissioners voted last month not to renew Villani's contract, set to expire in May. In a special meeting on Nov. 1, commissioners accepted Villani's immediate resignation. Commissioners did not disclose specific reasons for the parting.

Villani was hired in 2015 and agreed two years later to a contract extension that included an annual salary of $386,250 with a 3% annual raise and goal-based incentives.

Gold Coast administers Medi-Cal health insurance for more than 190,000 low-income Ventura County residents. An audit showed a budget deficit of $57 million for the fiscal year that ended in June.

The deficit was covered by reserves. Officials say finances have improved. The plan was operating at a loss of about $1.5 million from July through October.

A tag-team approach

Gold Coast Health Plan(Photo: STAR FILE PHOTO)

On Monday, commissioners signed off on sort of a tag-team approach for Villani's interim replacement. That team will be led by Margaret Tatar, managing principal of Health Management Associates.

Tatar, who lives in the Sacramento area, is expected to designate another principal from Health Management Associates to join her in filling the CEO duties full time, five days a week on a rotating basis.

Tatar will be paid $385 to $450 an hour for her services as well as $225 to $265 an hour for travel time, according to Gold Coast documents. In a written proposal to Gold Coast, she said her other responsibilities mean she could not be the full-time interim CEO but could be on site one or two days a week.

The other HMA principal, not identified Monday night, will be paid $360 to $390 an hour for his or her time, along with $215 to $230 an hour for travel. Commissioners mandated the CEO position be filled full time, five days a week.

The ceiling of the hourly rate — $450 — equates to $18,000 over a 40-hour work week. The other end — $360 — equates to $14,400.

Scott Campbell, Gold Coast's attorney, said the pay rate represents a "substantial reduction" in Health Management Associates' regular rate. He cited the firm's ability to immediately make an impact, referring to its expertise in Medi-Cal and its experience with Gold Coast.

'We want that expertise'

Tatar is a former assistant deputy director for the California Department of Health Care Services, the agency that regulates Medi-Cal managed care plans, including Gold Coast. She has consulted on strategic planning for Gold Coast on multiple occasions since 2015.

"We want that expertise," Campbell said. "The commission wants that."

Health Management Associates is a nationwide group that operates 20 offices and 200 consultants with a focus on publicly funded health care, according to its website.

David Grau, president of the Ventura County Taxpayers Association, focused on the temporary aspect of the agreement.

"It's a lot of money but theoretically the expertise they bring to the table should pay for itself," he said.

The contract continues until a new CEO is found but can also be terminated by Gold Coast with 14 days notice. Commissioners were scheduled to talk Monday in closed session about the search for a permanent CEO but made no public report.

When Villani resigned, Campbell said the plan would work out a separation agreement that would include some severance. The lawyer declined comment Monday on the status of negotiations but said the final agreement would be public record.

Tom Kisken covers health care and other news for the Ventura County Star. Reach him at tom.kisken@vcstar.com or 805-437-0255.